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Criticism of Walter’s Model In Dividend Theories

Criticism of Walter’s Model In Dividend Theories:

The following are some of the important criticisms against Walter model:

1. Walter model assumes that there is no extracted finance used by the firm. It is not practically applicable.

finance
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2. There is no possibility of constant return. Return may increase or decrease, depending upon the business situation. Hence, it is applicable.

3. According to Walter model, it is based on constant cost of capital. But it is not applicable in the real life of the business.

Criticism of Walter’s Model In Dividend Theories Criticism of Walter’s Model In Dividend Theories Reviewed by Ikpokolo Francis on Friday, June 23, 2017 Rating: 5

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